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Quick answer

Fayetteville costs $270/month less overall ($1,470 vs $1,740/mo). But Ann Arbor's 4.25% state income tax erases some of that gap — on an $80K salary, the tax difference is $120/year.

City Comparison · 2026

Ann Arbor vs Fayetteville

Side-by-side on rent, home prices, taxes, walkability, jobs, and climate — with a straight verdict for each type of mover.

Last updated: April 23, 2026

Ann Arbor vs Fayetteville at a Glance

MetricAnn ArborFayetteville
1BR Monthly Rent$1,250$1,300
2BR Monthly Rent$1,550$1,300
Median Home Price$485K$380K
Avg Utilities/mo$160$120
Avg Groceries/mo$330$300
Monthly Cost (1BR)$1,740$1,470
Walk Score75/10065/100
Transit Score52/10035/100
State Income Tax4.25%4.4%

Monthly cost = 1BR rent + utilities + groceries for one person. ✓ marks the lower/better value.

Cost of Living: What the Numbers Actually Mean

Rent gap: Fayetteville's 1BR averages $1,050/month vs $1,250 in Ann Arbor a $200/month difference, or $2,400/year. That's a meaningful gap worth factoring into your decision.

State tax: Ann Arbor charges 4.25% state income tax vs 4.4% in Fayetteville. On an $80K salary that's a $120/year difference. On $120K, the gap grows to $5,280 vs $5,100 — important context if you're choosing between tech job offers.

Home buying: Median homes in Fayetteville are $380K vs $485K in Ann Arbor. At a 20% down payment, that's a $21,000 difference in upfront cash — significant at early-career savings rates.

Utilities: Ann Arbor utilities run $40 more per month than Fayetteville. Factor this into your all-in monthly budget.

Walkability, Transit & Daily Life

Ann Arbor, MI

Walk Score75/100 — Very Walkable
Transit Score52/100 — Some Transit

Ann Arbor's walkability means you can genuinely live without a car in the right neighborhoods.

TOP NEIGHBORHOODS

Downtown / State StreetWalkable, vibrant, college vibe. State Street has shops, restaurants, bars. Walkable to UMich campus. Rents $1,400-1,700/month 1BR. Lively weekends but loud.
Central Campus / South UniversityNear UMich campus. Student rentals dominate. Rents $1,100-1,350/month 1BR (older homes). High turnover; party scene. 5-minute walk to campus.
North Campus / GeddesResidential, quieter. Families and graduate students. Older homes ($400-500K) with character. Tree-lined streets. 10-15 minute walk to campus.

Fayetteville, AR

Walk Score65/100 — Somewhat Walkable
Transit Score35/100 — Minimal Transit

Fayetteville's walkability means you can genuinely live without a car in the right neighborhoods.

TOP NEIGHBORHOODS

Downtown / Dickson StreetThe heart of Fayetteville with live music venues, restaurants, breweries, and nightlife. Walkable, vibrant, young demographic; rents higher ($1,200-1,400 1BR) but culture is unbeatable.
Razorback Heights / Near UA CampusStudent-adjacent neighborhood with rental apartments, young energy, and Gameday excitement. Affordable ($900-1,050 1BR), chaotic, but fun.
Hillcrest / East FayettevilleQuiet residential neighborhood with tree-lined streets, older homes, and family focus. Median home $350K; strong community feel.

Climate

Ann Arbor

Cold, snowy winters (15-30°F, 40-50 inches snow annually). Summers are mild (78-82°F, 55-65% humidity). Lake effect snow from Lake Michigan is significant.

Fayetteville

Humid subtropical with warm summers (88°F average), mild winters (40°F average), and high spring tornado risk. Annual precipitation 49 inches.

Job Market

Ann Arbor top industries

Higher EducationHealthcareTechnologyResearch & Development

Fayetteville top industries

Retail & E-commerce (Walmart)Technology & SoftwareEducation (University of Arkansas)Healthcare

Who Should Pick Which City

Move to Ann Arbor if…

  • You're a Students & alumni
  • You're a Academics & researchers
  • You're a Healthcare professionals
  • You're a Young professionals
  • You want to live without a car

Move to Fayetteville if…

  • You're a Tech workers and software engineers
  • You're a Walmart employees
  • You're a Families seeking good schools
  • You're a Outdoor enthusiasts (hiking, biking)
  • You want to live without a car
  • You're buying a home and want more for your money

Frequently Asked Questions

Is Ann Arbor or Fayetteville cheaper to live in?

Fayetteville is cheaper overall. Monthly costs (1BR rent + utilities + groceries) run $1,470 in Fayetteville vs $1,740 in Ann Arbor — a $270/month difference.

Which city is more walkable — Ann Arbor or Fayetteville?

Ann Arbor is more walkable with a Walk Score of 75/100 vs 65/100. Fayetteville is more car-dependent.

Ann Arbor vs Fayetteville: which has lower state income tax?

Ann Arbor has lower state income tax (4.25%). On an $80K salary, that saves $120/year vs Fayetteville (4.4%).

Is Ann Arbor or Fayetteville better for buying a home?

Fayetteville has lower median home prices at $380K vs $485K in Ann Arbor — a $105,000 difference on the median home.